Proximus (PROX) CMD 2024 summary

Strategic direction and integration

• Full integration of BICS into the operating model, with three business leaders overseeing DI, CPaaS, and carrier activities, and a new leader for carrier services to be appointed by summer's end.

• Centralized support functions for product, go-to-market, and operations to maximize synergies and ensure unified execution and objectives.

• Focus on leveraging direct connectivity to MNOs globally as a key competitive advantage in CPaaS, with integration of Mobtexting into Route Mobile's platform.

• Emphasis on cross-selling and leveraging complementary geographic footprints, especially in fast-growing regions like India, Africa, and Asia/APAC and LATAM.

• Unified platforms for CPaaS and DI targeted, with rapid integration planned and branding simplification considered to avoid customer confusion.

Strategic vision and market positioning

• Aims to become a worldwide leader in digital communications, leveraging a unique end-to-end presence across the value chain, including CPaaS, digital identity, and mobility services.

• Recent acquisition of Route Mobile strengthens position in the global CPaaS market, creating a scalable, omnichannel platform with over 3,000 clients and 10.5+ billion transactions monthly.

• Holds leading positions in P2P Voice & Messaging, Mobility, CPaaS, and Digital Identity, with unmatched global network coverage and direct connections to 450+ MNOs.

• Integrated product portfolio and global go-to-market capabilities underpin growth ambitions.

• Go-to-market strategy leverages three global brands (Telesign, Route Mobile, BICS) and targets both enterprise and CSP customers.

Market trends and business outlook

• CPaaS market expected to accelerate, with omni-channel delivery (SMS, WhatsApp, RCS, Viber, Voice) reaching 50% non-SMS by 2026.

• Only 50% of large corporations use CPaaS today, expected to rise to 90% in three years, supporting strong direct margin growth.

• BICS voice business aims to be a consolidator in a declining market, while signaling and mobility services are projected to grow at 5% CAGR, now representing 20% of international gross margin.

• Transition from transaction-based to service-based business model, focusing on intelligent, quality-driven message delivery.

• Prioritizes innovation in AI/ML for fraud prevention, privacy-by-design, and cloud-first strategies in digital identity.